A public hearing to review and collect comments on the Draft Environmental Impact Report for the proposed 331-unit development to rise up to ten stories on the northeast corner of Mission and 16th Streets, the so-called “Monster in the Mission,” has been scheduled for June 9.
But the legal battle between the development team and family that holds title to the 1979 Mission Street site has yet to be resolved. And in fact, the trial between the two parties, which now includes the added accusation of mental incompetence, isn’t slated to commence until the end of this month.
That being said, according to a court filing this morning, the two parties have been engaged in “serious settlement discussions” over the past two weeks, and on April 28, a draft settlement agreement was presented to the development team. But the aforementioned discussions appear to have since broken down, the draft settlement agreement appears to have been scuttled, and the property owners’ litigation team has now replaced their transactional counsel “which is no longer to be contacted.”
As such, Maximus Real Estate Partners, which has already invested an estimated $8 million to design and entitle the proposed development and has technically forfeited a $5 million deposit for the property, is now seeing a judicial order directing the two parties to an immediate settlement conference.
Maximus has accused the Jang family, which owns the property, of working behind the scenes, “through a series of bad faith, fraudulent and oppressive business maneuvers,” to actively delay the approval process for the proposed development in order to sell the site to an unnamed “national development company based on the East Coast” for $55 million, $13 million more than the $41.88 million contract price which Maximus negotiated in 2013.
And as we originally wrote last year: “With the potential for an additional $18 million in profit should the Jangs prevail and successfully sell the land to another developer for $55 million, and the potential for Maximus to lose its entire investment of $13 million to date, don’t expect a quick resolution to the suit or any forward progress on the development until it’s settled.”
We’ll keep you posted and plugged-in.
UPDATE: To clarify, the public hearing scheduled for June 9 will provide the public and Planning Commission an opportunity to comment on the Draft Environmental Impact Report for the project. The Planning Department will then prepare a response to the comments and concerns, at which point a hearing to adopt the EIR will be scheduled.